Fitch Ratings has affirmed Serendib Finance Limited’s National Long-Term Rating of ‘A+(lka)’. The Outlook is Stable.
Serendib’s rating is driven by Fitch’s view that its parent, Commercial Bank of Ceylon PLC (CB;
AA(lka)/Stable), the largest private commercial bank in Sri Lanka, would provide Serendib with extraordinary support, if required.
CB’s ability to support Serendib is reflected in its credit profile, which is underpinned by its standalone strength and Serendib’s relatively small size. The support assessment also takes into account CB’s 100% ownership of Serendib, track record of support via multiple equity infusions and the subsidiary’s increased level of integration with its parent. Serendib is rated two notches below its parent because of the subsidiary’s limited role within the CB group with Serendib accounting for less than 1% of CB’s consolidated gross loans at end-March 2019.
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